Standard Chartered Bank Kenya : 2023 Full Year Results Press Release.

CONFIDENTIAL

Press Release

Standard Chartered - FY 2023 results

For immediate release

12 March 2024, Nairobi, Kenya - Standard Chartered Bank Kenya Limited has today released its full year results for the year ended 31 December 2023.

Kariuki Ngari, Chief Executive Officer, said:

"We delivered a strong performance in 2023 with Profit Before Tax up 15 per cent year on year to KES 19.7 billion. Our top line growth of 23 per cent benefitted from strong business momentum coupled with improved margins. Our continued investment in a strong digital proposition and the impact of inflation led to a 20 per cent rise in operating expenses. Loans and advances were up 17 per cent, while deposits grew by 23 per cent, demonstrating that we continue to provide value to our clients.

Summary financial performance

All commentary that follows is on comparisons made to the year ended 31 December 2022.

• Operating income increased 23 per cent. Within this:
• • Net interest income increased 32 per cent due to growth in asset volumes and improved margins.
  • Non-interestincome increased 6 per cent due to growth in transactions volumes, favourable market movements, and robust performance in the Wealth Management business.
• Operating expenses increased 20 per cent reflecting the impact of inflation as well as increased investment spend on digital capabilities.
• Impairment losses on loans and advances increased by KES 2.1 billion, reflecting continued active management of the credit portfolio. Credit quality remained resilient. We remain alert to a volatile and challenging macro-economic environment.

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The balance sheet remained strong amidst a challenging macro-economic environment.

• Loans and advances to customers were up 17 per cent representing increased client demand. Asset quality improved significantly with non-performing loans ratio closing at 9.7%.
• Customer Deposits increased by 23 per cent. Funding quality remains high with current and savings accounts making up 97 per cent of total customer deposits.

Dividend

The Board will be recommending to shareholders at the forthcoming Annual General Meeting, a final dividend payment of KES 23.00 for every ordinary share of KES 5.00. An interim dividend of KES 6.00 was declared and paid in December 2023. This will bring the total dividend for the year to KES 29.00 per ordinary share, which is 32 per cent higher than the 2022 dividend.

Concluding remarks

Our consistent delivery and dedicated focus on strategy execution has contributed to a robust performance for 2023. We will continue to make the necessary investments to ensure that our platforms on which our clients depend on are superior in the market.

As we look ahead, external pressures persist, and we remain attentive to ensure that we continue protecting the franchise and helping our clients navigate through these challenging times.

Finally, I would like to acknowledge the remarkable efforts of my colleagues for their dedication to our clients and the communities that we serve.

--- ENDS ---

For further information please contact:

Kui Kinyanjui

Head of Communications

Standard Chartered Bank Kenya Limited

Mobile : [phone]

Standard Chartered

We are a leading international banking group, with a presence in 53 of the world's most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

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Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.

For more stories and expert opinions please visit Insightsat sc.com. Follow Standard Chartered on X,LinkedIn,Instagramand Facebook.

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CONFIDENTIAL

Financial performance summary

			2023 vs 2022
	31.12.2023	31.12.2022	Better/(Worse)
	KES	KES
	million	million	%
Interest Income	32,352	25,473	27
Interest expense	(3,027)	(3,250)	7
Net interest income	29,325	22,223	32
Fees and commissions	5,954	4,474	33
Foreign exchange income	8,445	5,973	41
Other income	(1,995)	1,307	(253)
Non funded income	12,404	11,754	6
Total operating income	41,729	33,977	23
Operating expenses	(18,681)	(15,546)	(20)
Loan impairment	(3,380)	(1,328)	(155)
Profit before tax	19,668	17,103	15
Taxation	(5,833)	(5,045)	(16)
Profit after tax	13,835	12,058	15

	31.12.2023	31.12.2022	Increase/
	KES	KES
	million	million	(Decrease)
Balance Sheet
Loans and advances to
customers	163,162	139,413	17
Customer deposits	342,853	278,879	23
Loans to deposits ratio	48%	50%
Capital
Core capital	51,218	42,133
Core capital ratio	17.77%	15.36%
Total capital	51,400	47,404
Total capital ratio	17.84%	17.28%

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